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on Microfinance |
| By: | Jean-Marie Baland (CRED, DEFIPP, University of Namur); Timothée Demont (Aix-Marseille Univ., CNRS, EHESS, Centrale Marseille, AMSE); Rohini Somanathan (Delhi School of Economics University of Delhi) |
| Abstract: | This paper investigates the consequences of the participation in informal microfinance groups, known as Self-Help Groups (SHGs), on children’s education and work in rural India. We analyze first-hand data collected from a panel of households in areas where new groups were formed in 2002. We observe these households three times over a five year period, which allows us to examine medium-term effects of SHG participation. We find a robust and strong increase in treated children’s secondary school enrollment rate over time, by about 20 percentage points, to be compared with a baseline rate of 45%. This effect stems from a quicker grade progression, leading to lower drop-out rates between primary and secondary school. We find no decrease in overall child labor (but a reorientation towards part-time domestic work), indicating that there is no clear substitution between labor and education for children of secondary-school age in rural India. Contrary to what is usually believed, we show that credit does not play any direct role in the increased schooling. However, we find evidence that it partly follows from social interactions within SHGs, under the form of peer effects. Our findings indicate that microfinance groups can have large effects on the human capital of participants and their families, though such effects can take time to materialize and happen through unintended channels. |
| Keywords: | microfinance, self-help groups, education, child labor, peer effects, India |
| JEL: | O15 G21 C33 R2 |
| Date: | 2020–05 |
| URL: | http://d.repec.org/n?u=RePEc:aim:wpaimx:1858&r=all |
| By: | Islam,Asif Mohammed; Muzi,Silvia |
| Abstract: | This study connects two important findings in Sub-Saharan Africa. First, digital technologies such as mobile money have become widespread and have increased investment by businesses, especially in East Africa. Second, women-owned business in the region significantly lag their male counterparts in capital investments. Using data for 16 Sub-Saharan African economies, the study connects the two findings by exploring whether mobile money use by women-owned firms increases their investment. The findings indicate that the positive relationship between mobile money use and investment is largely driven by women-owned firms and is statistically insignificant for men-owned firms. Potential channels of these effects are explored. Women-owned firms that use mobile money to transact with suppliers are more likely to invest. Mobile money also seems to facilitate greater provision of customer credit and generally greater demand for more credit by women-owned firms. Such patterns are not observed for men-owned firms. |
| Keywords: | Financial Sector Policy,Gender and Development,Access to Finance,International Trade and Trade Rules |
| Date: | 2020–07–27 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:9338&r=all |
| By: | Andinet Woldemichael; Daniel Gurara; Abebe Shimeles |
| Abstract: | Achieving universal health coverage, including financial risk protection and access to quality essential health-care services, is one of the main Sustainable Development Goals. In low-income countries, innovative and affordable health financing systems are key to realize these goals. This paper assesses the impacts of Community-Based Health Insurance Scheme in Rwanda on health-related financial risks using a nationally representative household survey data collected over a ten-year period. We find that the scheme significantly reduce annual per capita out-of-pocket spending by about 3,600 Rwandan Franc (about US$12) or about 83 percent of average per capita healthcare expenditure compared to the baseline level in 2000.The impacts however favor the rich as compared to the poor. The program also reduces the incidence of catastrophic healthcare spending significantly. |
| Keywords: | Consumer price indexes;Demographic indicators;Health insurance;Poverty;Health care;Healthcare spending,low-income,Rwanda,out-of-pocket,treatment effect,endogeneity,quartile,healthcare service |
| Date: | 2019–02–22 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2019/038&r=all |